Perma-Fix Environmental Services Inc (NASDAQ:PESI) (FRA:PFX1) has announced its financial results and provided a business update, telling investors it sees “significant pent-up demand'' that will drive revenue in the back half of 2021.
The company said it is advancing multiple initiatives within its treatment segment, which handles a magnitude of contaminated wastes for economic and compliant disposal. That said, the segment was hindered to some degree by the coronavirus (COVID-19) pandemic in the first quarter, Perma-Fix’s CEO, Mark Duff explained.
Revenue for the first quarter was $23.1 million, compared to $24.9 million in the same quarter of 2020. The decrease came entirely from the treatment segment, which saw revenue decline year-over-year to $7.5 million from $9.6 million as a result of reduced volume from waste shipment delays.
“As anticipated, we experienced weakness in our treatment segment due to the ongoing effects of the COVID-19 pandemic, which resulted in delayed shipments,” Duff said in a statement. “Partially offsetting this weakness, we achieved modest growth in our services segment revenue despite delays throughout the industry in awarding procurements, also due to the pandemic. Nevertheless, we remain optimistic, as we have begun to see a return to normalization.”
READ: Perma-Fix sees 4Q revenue grow by 28% on continued strength from its Services segment
Revenue for the first quarter was $23.1 million, compared to $24.9 million in the same quarter of 2020. The decrease came entirely from the treatment segment, which saw revenue decline year-over-year to $7.5 million from $9.6 million.
Perma-Fix’s services segment, meanwhile, employs innovative technology professionals that are trained to provide radiological protection and environmental remediation services. Duffy expects a surge in the coming months. Revenue from the services segment increased year-over-year to $15.6 million from $15.3 million.
“We anticipate a stronger second half of 2021, given our robust pipeline within the services segment and significant pent-up demand within the treatment segment,” Duff said. “In terms of the services segment, we have an unprecedented number and combined value of bids currently submitted and awaiting awards. We also expect to benefit from the government’s fiscal 2020 carryover funds, in addition to 2021 allocations that have been delayed and should help fund an acceleration of projects within the treatment segment.”
Gross profit for the quarter was $2.4 million, compared to $4.6 million in the same quarter of 2020. The company saw a net loss of $1.1 million, $0.09 per share, compared to net income of $1.2 million, $0.10 per share, in the first quarter of last year.
He continued: “Also, as previously disclosed, we are rapidly advancing several initiatives within the treatment segment that we believe have the potential to enhance our revenues at each of our treatment facilities. The foundation of our growth strategy is based on the addition of experienced technical talent in waste management and health physics over the past two years. We believe this foundation, coupled with new technology launches in both services and treatment will continue to provide our clients value and support our growth goals once COVID is behind us.”
Perma-Fix is a nuclear services company and leading provider of nuclear and mixed waste management services.
—Update: Added quarterly financial information—
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel